Currently, Bitcoin is stealing the show in the crypto realm. And it's well-deserved. After the U.S. presidential election, Bitcoin witnessed a remarkable nearly 40% surge and has now gained an astonishing 128% for the year. Additionally, it's hovering close to the psychologically significant $100,000 price mark.

Uncover the Potential of Bittensor in 2025

What is Bittensor?

Bittensor is an open source protocol designed for the establishment of decentralized machine learning networks. The Bittensor token, known as TAO, serves as the medium for buying and selling digital commodities within the Bittensor ecosystem. These digital commodities are all AI-related, encompassing elements like computing power, data, and machine learning models.It's crucial to understand that Bittensor can be viewed as a digital currency utilized to acquire AI products and services. Instead of being priced in dollars, these goods and services are denominated in TAO. To obtain these goods and services, one needs to possess some TAO.As the total value of the Bittensor AI ecosystem expands, the value of this currency increases. This phenomenon effectively explains why Bittensor has witnessed a meteoric rise in value over the past 18 months. In March 2023, a TAO token was worth only $100. Today, it commands a value of over $650, representing a staggering 550% gain. The rapid growth of AI can be attributed to this remarkable ascent.

The Convergence of AI and Crypto

Bittensor symbolizes the convergence of AI and crypto. This is a significant concept that Cathie Wood of Ark Invest detailed in her "Big Ideas" report for 2024. As she highlights, blockchain technology and artificial intelligence are two of the world's most crucial technologies at present, and any amalgamation of the two is bound to result in substantial increases in economic value.In fact, Cathie Wood firmly believes that the technological convergence of AI and blockchain may lead to the emergence of "tectonic macroeconomic shifts" similar to those witnessed during the first and second industrial revolutions. This explains why crypto investors are currently so enthusiastic about Bittensor. The convergence of AI and crypto has the potential to propel its value to new heights.

Bitcoin for AI?

Recently, some crypto traders have started referring to Bittensor as "Bitcoin for AI." This implies that Bittensor may eventually become the leading digital currency powering the AI economy.The idea of creating a digital currency specifically for AI is something that Cathie Wood has also delved into. As she pointed out last year, it is not efficient to use dollars to pay for AI-based goods and services. There is a need for a digital currency that AI bots can utilize and trade. She believes Bitcoin will fulfill this role.Admittedly, the notion of Bittensor being "Bitcoin for AI" may seem like marketing fluff often associated with Silicon Valley startups vying for venture capital. However, Bittensor does share certain characteristics with Bitcoin. Like Bitcoin, it is mined using computing power and electricity. Moreover, similar to Bitcoin, Bittensor has a limited lifetime supply of 21 million coins. This inherent scarcity, especially when compared to cryptocurrencies with coin supplies measured in the billions or even trillions, adds to its allure.Over time, this scarcity is expected to drive Bittensor's price higher. As the Bittensor ecosystem grows, the demand for TAO tokens will increase. As long as demand surpasses supply, the price should continue to rise.

Is Bittensor Really the Best AI Crypto Token?

When it comes to investing in AI crypto tokens, investors have a range of options. If we look at the top 100 cryptocurrencies ranked by market capitalization, there are 10 different AI crypto tokens worthy of consideration. This means that Bittensor is not the sole avenue for playing the "convergence of AI and crypto" investment thesis.Furthermore, there is no straightforward way to invest in Bittensor. Unlike Bitcoin, there is no spot crypto exchange-traded fund (ETF) available for buying and selling. Investors need to enter the spot cryptocurrency market directly and invest in it themselves. Even then, purchasing Bittensor may pose a challenge. For instance, it is not currently available for trading on Coinbase Global.Bittensor is not a suitable investment for everyone. It should be regarded as a highly speculative investment. Its upside potential is closely tied to the fortunes of AI. If the AI investment trend falters, the value of Bittensor is likely to decline. Having said that, I am including this cryptocurrency on my investment radar for 2025.